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COVID-19: The Game Changer & Workforce Realignment
April 2020
KPMG HR Advisory
(People & Change)
© 2020 KPMG Sri Lanka, a Sri Lankan partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative, a Swiss entity. All rightsreserved.
1
It requires wisdom, humility and discernment
to learn from others whilst identifying one’s
own innovative, prudent, humane strategies
based on solid policies and goals. These need
to be worked out with great hope, courage,
determination and leadership that bring out
the best in others that define solidarity –
once again displaying the Sri Lankan heritage
of values and resilience!
During this period, corporates in Sri Lanka
that form the backbone of Sri Lanka’s
economy are presently in a very crucial point
of time in making vital decisions, striving to
redefine business strategies and continue
business operations adapting differed
working arrangements apart from the
‘remote working’ mechanism, utilizing digital
platforms by their workforce.
We are in the midst of the COVID-19 pandemic, facing the gravest test of our lifetime and
an undefined future with devastating socio-economic consequences.
The challenges that come with COVID-19
are unprecedented and require
unprecedented responses. These would
have different parameters of application
based on multiple reasons specific to the
countries, business sectors, and entities.
The approach one takes to meet the
challenges would determine the level of
impact; and the approach of response to
meet the impact would determine the
final outcome.
The world keeps a close watch on the
manner different countries respond to
this global pandemic. It is not a secret
that Sri Lanka is greatly admired by the
world at this stage for the approach and
response in controlling the impact of
COVID-19 that aims at successfully
overcoming the pandemic.
It is known as the worst global economic disaster since 1930 - the 2nd
world war; its
impact predicted to last for another two years.
lost lives shattered families overwhelmed
health services
overworked
essential workers
lockdowns in
curbing the
pandemic
struggling
businesses
Increasing
Unemployment
world striving to
identify effective
responses
COVID-19: The Game Changer & Workforce Realignment
2
© 2020 KPMG Sri Lanka, a Sri Lankan partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative, a Swiss entity. All rightsreserved.
1
It is in this context that the impact of COVID-19 on the workforce of corporates – the
constituent that forms the very backbone of performance excellence of the entities are
examined. The mere strategies of overcoming the impact would only depict a somewhat
hopeless ‘firefighting’ scenario, whereas the damage would be done by the time it is
overcome. Hence, we need robust, proactive, ambitious and courageous strategies that
enable identifying and realizing opportunities within the challenges.
COVID-19: The Game Changer & Workforce Realignment
As discussed above, success in overcoming the impact requires to be addressed through
a process.
Accordingly, it entails to be analyzed
in five phases as noted below:
The strategic phases formulate three (03)
key milestones:
Identify Challenges
What are the challenges of
COVID-19 that impact the
workforce?
Mitigate Impact
What are the responses to
mitigate the identified challenges
and its impact affecting the
workforce?
Level of Impact
What is the residual impact that
needs to be addressed?
Overcome the Impact
What are the strategies to
overcome the impacts to
address the residual impact?
Reboot and Reinvent
What are the mechanisms to
emerge as a stronger and
greater entity?
1
2
3
Milestone 1
Positioning for
strategic direction
(ON THE MARK)
Milestone 2
Taking the stand for
action (GET SET)
Milestone 3
Strategic Action (GO)
3
© 2020 KPMG Sri Lanka, a Sri Lankan partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative, a Swiss entity. All rightsreserved.
In moving ahead on the above
milestones, let us look at a few factors
that form the background of elements in
deriving the strategic process.
The key areas of concerns pertaining to
the workforce can be clustered within
the dynamics of 6Cs:
1. Capacity
workflow, work volume, workforce cadre
and structures and work schedules
2. Cost
workforce cost implications
3. Connection
Workforce engagement, morale and
collaboration and interaction.
4. Capability
ability to discharge job role performances
5. Compliance
approvals, controls, safety and security
6. Change
Define change processes, address
issues, enable and embrace change
• Would this be a war where the means matter
much in deciding the end and not just the
mere end?
• Would business leaders be called to re-align
the workforce as a captain re-strategizes
his/her players with the change in the game?
• How would the business leaders provide their
players – the workforce a level playing field
that enable them not just to save the game
but to maintain the just and fair approach?
• How would the business leaders identify ‘the
tough’ that gets going, ‘when the going gets
tough’?
• When should the business leaders sort, sift,
sieve or winnow the passengers from the
performers of the workforce?
• Will it be a war of the ‘survival of the fittest’
or the ‘last resort’ to prevent the destructive
collapse of the entities and the national
economy?
• How should the business leaders shift from
big dreams of 2020 to sensible basics in
overcoming the storm together with the
valued workforce?
• How would the business leaders build a
workforce of hope and courage, resilience,
loyalty and commitment – a people of strong
minds and right hearts that identify great
opportunities within challenges; possibilities
within impossibilities? A people that form the
anchor of stability and strength to the
company?
• How would the business leaders redefine the
brand identity and values whilst overcoming
the situation of COVID-19 and emerge as a
stronger and greater entity?
COVID-19: The Game Changer & Workforce Realignment
COVID-19 was able to stop the world in
its tracks and bring the business
operations to a screeching halt while for
some, it changed their existing business
models and has also changed customer
behavioral patterns.
Hence, there are a few questions which
need to be pondered on, which are vital in
formulating the strategic approach.
• Could COVID-19 be a game changer?
• Could giant players step down and small
players step up?
4
© 2020 KPMG Sri Lanka, a Sri Lankan partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative, a Swiss entity. All rightsreserved.
COVID-19: The Game Changer & Workforce Realignment
5
To be strong and courageous was never
an ‘option’, but a ‘must’ for the successful
leaders of the competitive corporates.
But, the moment of truth; the real test is
now – in this turbulent, ambiguous,
despondent and imperceptible time, that
has never been experienced before.
We present as ‘annexure - 1’ the key
areas that need to be addressed relating
the workforce dynamics (6Cs) discussed
in a phased approach across the three
milestones that enable to derive a
strategic way forward.
COVID-19 WORKFORCE REALIGNMENT MODEL
It requires noting that the applicability of the
questions presented would differ and inter-
change across the milestones from entity to
entity.
The COVID-19 workforce realignment model
brings together the key components
discussed in this paper. It presents a
proactive, focused, prudent approach; from
‘identifying challenges of COVID-19’ to ‘Post
COVID-19 rebuilding of a stronger entity’ -
driven by a workforce of great resilience.
• Identify Challenges
• Mitigate the Impact
Positioning for
strategic direction
(ON THE MARK)
• Identify the Level of ImpactTaking the stand
for action
(GET SET)
• Overcome the Impact
• Reboot and Reinvent
• Capacity
• Cost
• Connection
• Capability
• Compliance
• Change
Strategic Action
(GO)
Strategy Milestones Process Phases
Strategy alignment with
Workforce Dynamics (6Cs)
© 2020 KPMG Sri Lanka, a Sri Lankan partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative, a Swiss entity. All rightsreserved.
COVID-19: The Game Changer & Workforce Realignment
6
Identify the
Challenge
Identify
the
Residual
Impact
Reboot
and
ReinventOvercome
the Impact
Mitigate the
Impact
Stand for
Action
Implement
Action
Positioning
Strategic
Direction
Feedback / Forward
Leadership Involvement
The HR Advisory (People & Change)
team – the HR Advisory arm of KPMG in
Sri Lanka together with diverse service
functions of KPMG’s Advisory segment
are geared in bringing a ‘total solution’
across the key milestones that help you
overcome the setbacks of COVID-19 as
well as move ahead on new
opportunities.
How KPMG can help?
It is of essence that challenges are identified
and mitigated in a timely manner with the
ultimate aim of building a Post COVID-19
stronger entity that can identify opportunities
within challenges enabling innovative
approaches, services, products derived
through a workforce of greater commitment,
competence and above all - resilience.
© 2020 KPMG Sri Lanka, a Sri Lankan partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative, a Swiss entity. All rightsreserved.
COVID-19: The Game Changer & Workforce Realignment
7
— Organizational restructuring, ideal minimum cadre and formulation of flexible labour
models and drawing of business continuity plans
• Alignment to operational changes, regulatory compliance, economic, social
and political trade-offs, and address the futuristic operational impact, enabling
business continuity and employee productivity
• Work arrangement mechanisms enabling connectivity whilst maintaining the
required social distancing having assessed the organization’s capability,
processes and protocols
• Policy guidelines and implementation support of ideal digital platforms for
effective remote working systems
• Assess cost implications of remote access related to technology and tools,
security measures and licensing
• Maximize the wave of forced adaptation on digital transformation in
formulating collaborative models for greater efficiency
• Identify labour cost reduction strategies through differed work arrangements
and flexible labour models
• Analysis of job roles to be created, made obsolete and diversified
• Review of key accountabilities towards reassignment of staff aligned to
competencies
• Analysis of multiple factors that identify the ideal minimum cadre
• Study of existing platforms, digital HR readiness and thereby suggest action
plans
• Predictive observations on changed customer behaviour trends and durations
based on the analysis of related elements, root causes and other associated
factors
• Assess cost vs benefit of remote access related to technology and tools,
security measures and licensing
• Predictive analytics on changed employee behaviours and performances,
based on analysis of related variables and root causes
• Compile business continuity plans with a workforce optimization approach
through flexible labour model optimizing workforce utilization and productivity,
skill transfers and work re-assignment
1Strategic initiative in addressing issues
How KPMG can help?
© 2020 KPMG Sri Lanka, a Sri Lankan partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative, a Swiss entity. All rightsreserved.
COVID-19: The Game Changer & Workforce Realignment
8
Strategic initiatives in addressing issues
— Restructuring of Rewards and Benefits, Drawing of VRS and Computation of
Severance Compensation
• Legal compliance, humane, responsible and professional approach
• Review of the performance-based pay system/staff incentive schemes, evaluating
incentive plans and performance goals for management and the broader workforce
on a Post-COVID basis towards cost optimization securing the organization’s financial
sustainability
• Analyze the total workforce cost profile - direct and indirect costs for identifying cost
reductions in assessing the mechanisms of differed salary payments having
evaluated the entity’s benefits program
• Realignment of the company’s benefit schemes through market insights
2
Strategic initiatives in addressing issues
— HR Policy review and Implementation support on COVID-19 Preparedness Plan
addressing potential implications – Promoting the Health and Wellbeing of the
Workforce 3• Design and review policies required to balance employee costs towards business
continuity and growth whist maintaining the alignment to policy standardization and
compliance
• Review employment contract terms evaluating the legal framework that facilitates
implementation of revised labour/workforce model/ changed accountabilities and job
role reassignment
• Identify the level of current HR processes and upcoming challenges in formulating HR
solutions, policies and processes
• Development of a unique plan to prevent and control COVID-19 for your workplace:
KPMG‘s Healthcare Team comprised of medical professionals will visit your
office/factory in order to develop a unique plan to prevent and control the spread of
COVID-19 at your workplace and implement a training plan for the employees of your
company.
• Awareness Campaign: Design posters and video clips to spread awareness and educate
to the employees and the minor staff for the prevention and control of COVID-19
• Healthy workforce: KPMG can also establish health promotion-related activities to
promote a healthy workforce concept to reduce absenteeism due to sicknesses
How KPMG can help?
© 2020 KPMG Sri Lanka, a Sri Lankan partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative, a Swiss entity. All rightsreserved.
COVID-19: The Game Changer & Workforce Realignment
9
Strategic initiatives in addressing issues
— Review of the competency framework, gap analysis and formulation of required
skills and enhance performance standards
• Identify new skills in demand and workforce upskilling through a “Competency
Framework” aligned to restructure process and growth opportunities in a futuristic
approach required for resilience and building of talent pools and shared resources
• Review the hiring plan for the implementation of new opportunities
• Design and implement multi-tasking teams for skill transfers increasing capabilities,
connectivity and reduce the risk of non-availability of specific resources
• Review performance goals to revise and enhance performance standards that Post-
COVID-19 demands and formulate the competencies and attitudes that are required to
work harder and smarter
• Formulate practical approaches that identify the staff, that strive to stand-up to the test
of challenging times and those that take a back-seat in identifying the ‘true performers’
4
Strategic initiatives in addressing issues
— Building a people of connectivity and resilience, identify change agents and drive a
performance culture whilst promoting the employer branding 5• Provide unique learning initiatives (virtual and real) that bring out the best in people;
that build a people of strong minds and right hearts who identify opportunities within
challenges and turning impossibilities into opportunities; enhance workforce
connectivity and engagement that brings out team synergy, innovation and develop a
people of resilience
• Approach to eradicate dysfunctional conflicts and face external challenges
successfully and enable different teams to come together in heart and mind with one
purpose and togetherness
• Identify the change agents in driving a performance culture towards higher operational
excellence proactively with courage and ambition enabling to overcome the storm of
COVID-19 together with a workforce that works with their hearts in making the
required difference
How KPMG can help?
© 2020 KPMG Sri Lanka, a Sri Lankan partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative, a Swiss entity. All rightsreserved.
COVID-19: The Game Changer & Workforce Realignment
10
Strategic initiatives in addressing issues
— Preparedness with HR Big Data and Digital HR
• Analyze HR touch points of the company to capture all data requirements to face
future challengers more effectivity, timely and productively. (digital HR readiness)
• Provide valuable insights for decision-making in a HR perspective using advanced
analytics of existing data repositories
• Introducing HRISs or upgrading of the existing HRIS to reduce employee movements,
and integration with the existing ERP system and facilitate automation of specific HR
processes and tasks
• Developing a modern, simple digital HCM strategy
• Introducing a modern HCM or upgrade an existing HCM platform that easily integrates
with the existing systems (i.e., ERP)
• Automate routine HR tasks using robotic process automation (RPA)
6
Strategic initiatives in addressing issues
— Labour law provisions to keep the business afloat under crisis (Refer Annexure - 2)7• Important Information of labour law provisions on derived corporate strategies,
policies and guidelines which might help to keep the business afloat under crisis
• Review the existing employment contracts and advise on the way forward
• Facilitate amendments and revisions to employment contracts/appointment letters
• Propose new terms of employment to be incorporated into employment contracts
• Review the existing salary structure and advise future changes that need to be
implemented to revise the same
• Facilitate the review of corporate strategies, policies and guidelines in compliance
with regulatory provisions of labour laws and tax regulations for finalization through
management decisions
• KPMG does not intend to provide legal advice as individual situations will differ and
should be discussed with an expert and/or lawyer.
How KPMG can help?
© 2020 KPMG Sri Lanka, a Sri Lankan partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative, a Swiss entity. All rightsreserved.
Annexures
COVID-19: The Game Changer & Workforce Realignment
11
© 2020 KPMG Sri Lanka, a Sri Lankan partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative, a Swiss entity. All rightsreserved.
COVID-19: The Game Changer & Workforce Realignment
12
Annexure 1
WORKFORCE DYNAMICS 1 – CAPACITY
Mile
sto
ne
1
-P
ositio
nin
g fo
r strateg
ic d
ire
ctio
n
Identify Challenges: Identifying the challenges of COVID-19 that impact the workforce
• Are there operational hindrances due to inapplicable or reduced market demand of
products/services or deficiency in input material or information for work process continuity?
• What are the business units operationally overwhelmed by high work volumes of existing work
operations and that need diversification due to changes in market needs?
• Do you have the short and long-term operational visibility based on supplier and market
demand changes?
• How do you respond with workforce planning to changing operational strategies?
• How do you confirm business continuity and employee productivity with remote working or
differed work arrangements?
• How do you assess the workforce demand to formulate the minimum required workforce?
• Have you identified job roles that need to be created, made obsolete, diversified or multi-
tasked?
• Have you compiled the entity specific strategies for the COVID-19 Preparedness and Response
Plan in preventing the spread of disease within your entity?
• How would you implement this plan, respond to unexpected situations and ensure effective
business operations?
Mitigate Impact: Identifying the responses to mitigate the impact affecting the workforce
• Is there proactive engagement with business partners, process owners and related
stakeholders apart from a market study and research in:
- Capturing elements of ‘inapplicability’ and its predictive duration?
- Capturing the extent, level and duration of input or information unavailability?
- Identifying changed customer behaviour trends of the market and its duration?
- Identifying the elements, root causes and factors contributing to the reduced market need?
- Identifying the key assumptions in workforce planning and scheduling for work
continuation?
• Have you considered the long-term negative implications in strategizing for labour reductions
even as a last resort?
• Have you identified strategies to address critical elements related to the COVID-19
Preparedness and Response Plan?
• Have you created a Business Continuity Plan in case your staff are quarantined? Is backup
capacity available?
© 2020 KPMG Sri Lanka, a Sri Lankan partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative, a Swiss entity. All rightsreserved.
COVID-19: The Game Changer & Workforce Realignment
13
WORKFORCE DYNAMICS 1 – CAPACITY
Mile
sto
ne
2
–
Takin
g th
e stan
d fo
r A
ctio
n
Level of Impact: What is the residual impact that needs to be addressed?
• Have you identified the level of successful mitigation of adverse impacts as against the
challenges in ‘workforce capacity’ that were identified?
• Have you identified the critical elements and potential challenges on the actual impact that needs
to be addressed?
• Have you formulated clear goals to be achieved with a clear focus in addressing the key issues
pertaining to workforce capacity?
• Are you in the process of identifying the revision of strategies in addressing critical elements of
the COVID-19 Preparedness Plan?
• Have you identified the critical job positions for the on-going work functions and their BCP?
• Have you considered revising the workforce plan with provision for ‘what if’ scenarios?
Annexure 1
© 2020 KPMG Sri Lanka, a Sri Lankan partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative, a Swiss entity. All rightsreserved.
COVID-19: The Game Changer & Workforce Realignment
14
WORKFORCE DYNAMICS 1 – CAPACITY
Mile
sto
ne
3
–
Strate
gic
A
ctio
n
Overcome Impact: What are the strategies to address the residual impact?
• Is there a review in the decision making process and key accountabilities?
• Have you planned reassigning staff from noncritical areas to most critical areas?
• Have you assessed the organization’s capability, processes and protocols for diverse work
arrangements?
• Do you have mechanisms in place to review/reallocate resources across high-demand areas?
• Can you plan for the sharing of critical resources?
• Evaluate the pre-COVID and Post COVID work approach efficiencies and productivity
• Is the leadership in the process of formulating decisions and policies for reviewing business
strategies and operations for the short and long-term?
Reboot and Reinvent: Identifying the mechanisms to emerge as a stronger and greater
entity?
• Are you identifying a segment of the workforce in ‘inapplicable’ work areas based on their high
expertise and proven exceptional work performance to define, design, and review the service
or product processes and strategies for greater market edge in re-entering the market in a
short and long-term basis with required diversification?
• Are you planning to enable these high performers to provide strategic and operational support
to business units and work operations across the entity in alignment to their competencies,
influencing their high performance culture?
• Are you planning on the process to capture assumptions on market trends and innovatively
identify new drivers in analyzing the long-term workforce planning whilst identifying potential
operational, socio-economic challenges?
• Have you identified the elements that are the ‘anchors of stability’ and derived strategies to
strengthen those?
Annexure 1
© 2020 KPMG Sri Lanka, a Sri Lankan partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative, a Swiss entity. All rightsreserved.
COVID-19: The Game Changer & Workforce Realignment
15
Annexure 1
WORKFORCE DYNAMICS 2 – COST
Mile
sto
ne
1
-P
ositio
nin
g f
or strate
gic
d
ire
ctio
n
Identify Challenges: Identifying the challenges of COVID-19 that impact the workforce
• Have you accounted for implementation costs of the COVID-19 Preparedness Plan and
potential implications?
• How would you manage the workforce costs, given the changes in productivity, reduction in
revenue and cash flow; whilst retaining the valued workforce - maintaining corporate values
and brand image?
Mitigate Impact: Identifying the responses to mitigate the impact affecting the workforce
• Have you reviewed your policies on paid and unpaid leaves, project releases, capacity ramp
downs, and identified idle employees and discussed the critical changes with the senior
leadership team?
• Have you evaluated the impact of external factors on your salesforce performance and
earnings opportunity?
• Have you assessed cost implications of remote access related to technology and tools? Have
you reviewed reimbursement policies for remote workers’ home office equipment and costs
arising from differed work arrangements?
• Have you analyze the total workforce cost profile - direct and indirect costs for identifying cost
reductions?
• Have you assessed the mechanisms of differed salary payments?
© 2020 KPMG Sri Lanka, a Sri Lankan partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative, a Swiss entity. All rightsreserved.
COVID-19: The Game Changer & Workforce Realignment
16
WORKFORCE DYNAMICS 2 – COST
Mile
sto
ne
2
–
Takin
g
th
e stan
d fo
r A
ctio
n
Level of Impact: What is the residual impact that needs to be addressed?
• Have you identified the level of successful mitigation of the adverse impact as against the
challenges pertaining to ‘workforce cost’ that were identified?
• Have you identified the critical elements and potential challenges on the actual impact that need
to be addressed?
Mile
sto
ne
3 –
Strate
gic
Actio
n
Overcome Impact: What are the strategies to address the residual impact?
• Have you started reviewing the cost and time impact of changes to the workforce plan? Are
you planning to activate a hiring freeze for some time?
• Have you started evaluating incentive plans and performance goals for the management and
broader workforce on a Post-COVID basis that navigates a high performance culture?
Reboot and Reinvent: Identifying the mechanisms to emerge as a stronger and greater entity
• What are the new policies you need to draft to balance employee costs and business continuity?
Have you fully considered the impact of the short-term cost reduction on your long-term ability to
maintain business continuity and future business growth?
• How would you align your Post-COVID-19 workforce strategies to gain a higher edge and long-
term benefits from investments made during the pandemic period on workforce strategies?
Annexure 1
© 2020 KPMG Sri Lanka, a Sri Lankan partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative, a Swiss entity. All rightsreserved.
COVID-19: The Game Changer & Workforce Realignment
17
Annexure 1
WORKFORCE DYNAMICS 3 – CONNECTION
Mile
sto
ne
1
-P
ositio
nin
g fo
r strate
gic
d
ire
ctio
n
Identify Challenges: Identifying the challenges of COVID-19 that impact the workforce
• Can your information technology (IT) infrastructure support the full adoption of remote
working?
• Will there be a delay or constraint in adopting IT infrastructure, how is this going to be
communicated?
• How will you strengthen and empower your global employee support groups?
Mitigate Impact: Identifying the responses to mitigate the impact affecting the workforce
• Are there robust communication plans for clear, honest and timely sharing of information with
staff and relevant stakeholders that enhance confidence, comfort and greater cooperation?
• Have you been communicating with your employees regularly on all the changes and next
steps and minimize potential feelings of anxiety and isolation among your workforce? Is there
communication on the potential impact on operations, supply chain, revenue, cash flow, etc.
and management expectations from staff?
• How are you planning to keep employee motivation and morale high and drive a culture of
collaboration?
© 2020 KPMG Sri Lanka, a Sri Lankan partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative, a Swiss entity. All rightsreserved.
COVID-19: The Game Changer & Workforce Realignment
18
WORKFORCE DYNAMICS 3 – CONNECTION
Mile
sto
ne
2
–
Takin
g
th
e stan
d fo
r A
ctio
n
Level of Impact: What is the residual impact that needs to be addressed?
• Have you identified the level of successful mitigation of adverse impacts as against the
challenges pertaining to ‘workforce connection’ that were identified?
• Have you identified the critical elements and potential challenges on the actual impact that need
to be addressed?
Mile
sto
ne
3
–
Strate
gic
Actio
n
Overcome Impact: What are the strategies to address the residual impact?
• Is there a structured plan to promote the well-being of employees and protect productivity
while embracing large-scale adoption of differed work arrangements apart from remote
working?
• Towards gaining higher work performance, how will you build virtual connections as part of the
talent strategy that bring team synergies together and support one another in creating a greater
connection of hearts and minds whilst maintaining the required social distancing? Have you
introduced employee support networks?
Reboot and Reinvent: Identifying the mechanisms to emerge as a stronger and greater entity?
• Will a new flexible work time policy be needed for Post-COVID enhanced operational work
process?
Annexure 1
© 2020 KPMG Sri Lanka, a Sri Lankan partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative, a Swiss entity. All rightsreserved.
COVID-19: The Game Changer & Workforce Realignment
19
Annexure 1
WORKFORCE DYNAMICS 4 – CAPABILITY
Mile
sto
ne
1
-P
ositio
nin
g fo
r strate
gic
d
ire
ctio
n
Identify Challenges: Identifying the challenges of COVID-19 that impact the workforce
• Have you identified critical capabilities in your organization that will be most impacted by
COVID – 19?
• Have you decided to change performance expectations to a higher level? How are you planning
to support your employees through that?
• Are you reviewing employee performance projections for the year? Have you started
prioritizing work and listing mission-critical work items?
Mitigate Impact: Identifying the responses to mitigate the impact affecting the workforce
• Is the current infrastructure available for remote working, optimum for delivering necessary
results?
• Do you have a clear and robust understanding of your current workforce capabilities, skillsets
and structure?.
• Do you have a short-term development plan for reallocating resources to address gaps/
unexpected immediate needs?
• Do you have the ability to reskill employees while they are working remotely? Do you
understand the current and previous experience and capabilities of your resources? Are you
able to determine which resources can be rapidly reskilled should demand require?
• Have you identified people who are top retention priority for the organization? Have you spoken
with them on re-skill requirements and revision of job roles?
© 2020 KPMG Sri Lanka, a Sri Lankan partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative, a Swiss entity. All rightsreserved.
COVID-19: The Game Changer & Workforce Realignment
20
WORKFORCE DYNAMICS 4 – CAPABILITY
Mile
sto
ne
2
–
Takin
g
th
e stan
d fo
r A
ctio
n
Level of Impact: What is the residual impact that needs to be addressed?
• Have you identified the level of successful mitigation of the adverse impact as against the
challenges pertaining to ‘workforce capability’ that were identified?
• Have you identified the critical elements and potential challenges on the actual impact that need
to be addressed?
Mile
sto
ne
3
–
Strate
gic
Actio
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Overcome Impact: What are the strategies to address the residual impact?
• Have you identified the biggest risks to your organization’s productivity?
• Have you captured the work task deviations and formulated the revised job roles in a multi-task
approach and revised the competency matrix to facilitate the change of direction and higher
performance?
• Have you identified the skills within the entity, which are mission critical to manage through
COVID-19?
• How would you train the mindset of the people to accept change in multiple dimensions and
require a higher commitment to hard work that is vital to overcome the economic downturn
impacted by COVID-19?
• How would be build a people with a strong and innovative mind to identify new opportunities
and possibilities in challenges and impossibilities that will create a positive financial outcome?
• Are you making decisions in keeping with your corporate values and policies that define and
rebuild your brand image?
• How will you define build, buy, and borrow talent strategies considering this scenario to extend
in future? How will you create agile models so that ramp-ups/ downs can be easily managed?
Reboot and Reinvent: Identifying the mechanisms to emerge as a stronger and greater entity
• Are leaders prepared and do they understand the new norm for making informed decisions? How
will you build leadership capabilities to manage this agility and ambiguity in the future?
• Is there a process to re-evaluate the organization’s processes and operations and identify ways
to remove/minimize human intervention?
Annexure 1
© 2020 KPMG Sri Lanka, a Sri Lankan partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative, a Swiss entity. All rightsreserved.
COVID-19: The Game Changer & Workforce Realignment
21
Annexure 1
WORKFORCE DYNAMICS 5 – COMPLIANCE
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Identify Challenges: Identifying the challenges of COVID-19 that impact the workforce
• Do you have a plan to help ensure that employees are aware of and compliant with your social
media policy?
• Have you done a risk assessment of the identified collaborative technological tools?
• Are people able to comply with your regulated processes while working from home, e.g. are
electronic approval processes in place? Do you have a plan to address the renewal of required
professional licenses for employees?
• Are you able to mobilize teams to provide multijurisdictional/region wide services if required for
businesses continuity? What if the current situation extends beyond a few months?
Mitigate Impact: Identifying the responses to mitigate the impact affecting the workforce
• Are you communicating the importance of data security? Phishing scams can be prevalent at
this time.
• Have you confirmed the immigration and visa status of all your expat employees given that
there are potential travel bans? Are there any significant risks in any specific locations?
• How will you evaluate virtual employee compliance? Do you need to build new tools?
• Have you considered the legal provisions relating to workforce re-structure, salary re-structure
and staggered salary payments and such other cost optimization initiatives?
© 2020 KPMG Sri Lanka, a Sri Lankan partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative, a Swiss entity. All rightsreserved.
COVID-19: The Game Changer & Workforce Realignment
22
WORKFORCE DYNAMICS 5 – COMPLIANCE
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Level of Impact: What is the residual impact that needs to be addressed?
• Have you identified the level of successful mitigation of the adverse impact as against the
challenges pertaining to ‘compliance’ that were identified?
• Have you identified the critical elements and potential challenges on the actual impact that need
to be addressed?
• Are you able to conduct talent and performance reviews and implement any necessary short-
term actions to help ensure ongoing compliance?
• Are your decisions in line with ethical principles and the organization’s values?
• Are there risks associated with working from home/remote working?
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Overcome Impact: What are the strategies to address the residual impact?
• you have compressed and readily accessible knowledge transfer and on-boarding programs to
address your compliance requirements? How are you planning to communicate with your
contract workforce?
• How will you design new T&E policies for employees for the future? How will you track and
manage overtime?
• Is a risk assessment of the collaborative technological tools needed to be carried out?
Reboot and Reinvent: Identifying the mechanisms to emerge as a stronger and greater entity
• What are the key areas of compliance issues that you would submit to relevant authorities to be
addressed taking into consideration economic and social impact arising from Covid 19
• Are you thinking of implementing a compliance monitoring solution ?
Annexure 1
© 2020 KPMG Sri Lanka, a Sri Lankan partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative, a Swiss entity. All rightsreserved.
COVID-19: The Game Changer & Workforce Realignment
23
Annexure 1
WORKFORCE DYNAMICS 6 – CHANGE
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Identify Challenges: Identifying the challenges of COVID-19 that impact the workforce
• Have you identified, staffed, and trained a crisis response team to keep your employees,
customers and business partners informed in managing change?
• How do you know key leaders are aligned to current initiatives and efforts? Are leadership
action plans developed and in place?
• How will you start planning for people strategies after the COVID- 19 pandemic? What factors
will you include in planning? Do you plan to conduct social network analysis to understand who
your influencers are to align your communication and change strategy?
Mitigate Impact: Identifying the responses to mitigate the impact affecting the workforce
• Have you established an employee check-in process to understand and key concerns or any
change issues or challenges? Are you also planning to allow them to write or post
anonymously?
• How do you identify, measure, and address resistance when working virtually? Have you
identified action plans?
• Have you identified the best adaptors and influences of change in forming the change agents?
© 2020 KPMG Sri Lanka, a Sri Lankan partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative, a Swiss entity. All rightsreserved.
COVID-19: The Game Changer & Workforce Realignment
24
WORKFORCE DYNAMICS 6 – CHANGE
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Level of Impact: What is the residual impact that needs to be addressed?
• Have you identified the level of successful mitigation of the adverse impact as against the
challenges pertaining to ‘change aspects’ that were identified?
• Have you identified the critical elements and potential challenges on the actual impact that need
to be addressed?
• Have you identified what changes are likely to become permanent and which will revert to the
pre-pandemic state?
• Will you use any analysis or focus groups to understand how employees feel about changes in
the organization?
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Overcome Impact: What are the strategies to address the residual impact?
• Have you analyzed the responses communicated by staff on the new ways of working and
leading practices?
• Have you aligned your senior leadership team on the new ways of working, e.g. leading virtual
teams?
• Have you enabled a fear free and supportive culture that enable creative ideas that identify
opportunities within the challengers in promoting innovative solutions, processes, services and
products?
Reboot and Reinvent: Identifying the mechanisms to emerge as a stronger and greater entity?
• Do you have the ability to follow through and execute on the changes required for the in-flight
initiatives in the organization? How will you keep the teams engaged even if the initiatives are
stopped for some time?
• How will you support the changes your organization and employees are facing from the social,
political, economic, and other external dynamics? How will you prepare your leaders to lead in
the future in situations like these?
• Have you enabled the workforce to have hope in their hearts and move ahead with courage in
regaining much more despite setbacks, obstacles and impossibilities?
• Are the staff made to realize that if they are to overcome difficulties, pursue new opportunities
and become stronger as an entity, it requires them to work harder and smarter in bringing about
a higher performance culture?
• Have you utilized the momentum to start planning for people strategies Post the COVID-19
pandemic?
Annexure 1
© 2020 KPMG Sri Lanka, a Sri Lankan partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative, a Swiss entity. All rightsreserved.
COVID-19: The Game Changer & Workforce Realignment
25
Annexure 2
Important Information on labour law provisions which might help to keep the
business afloat under crisis.
*KPMG does not intend to provide legal advice as individual situations will differ and should
be discussed with an expert and/or lawyer.
— Shop and Office Employees (Regulation of Employment and
Remuneration) Act. No.19 of 1954 (as amended) is one of the
key legislations which relates to the terms and condition of
employment. It provides for the regulation of employment,
hours of work and remuneration of persons employed in shops
and offices.
Shop and
Office
Employees
(Regulation of
Employment
and
Remuneration)
Act. No.19 of
1954
— This legislation was enacted with the principle objective to
regulate the wages and other emoluments for the persons
employed in trades (i.e.- Garment manufacturing, Hotel and
Catering, Printing, etc.,) Provisions relating to wages and hours
of work are also encompassed for these scheduled categories
of employment.
Wages Board
Ordinance No:
24 of 1941
— These acts were introduced to provide mandatory retirement
and termination of employment benefits to employees in the
private sector and certain government corporations. This
legislation imposes a legal requirement for an employer to
make deposit of contributions to the Employees’ Provident
Fund/ Employees’ Trust Fund to enable the retired employees or
those whose employment has ceased, to obtain provident fund
benefits easily and without delay, to keep the employees
informed and to take other necessary action in this regard. The
Act provides in detail for the method of computation, payment,
penal consequences for defaults in payment, etc.
Employees
Provident Fund
Act No: 15 of
1958
Employees’
Trust Fund Act
No. 46 of 1980
— This Act was enacted with the objective to provide special
provisions in respect of the termination of the services of
workmen in non-disciplinary situations (such as a closure of
business or a division). This Act protects the employees from
unlawful termination and also specified the grounds and
method to effect termination of employment. This piece of
legislation is especially important when providing for VRS
situations.
Termination of
Employment of
Workmen
(Special
Provisions) Act
No: 45 of 1971,
© 2020 KPMG Sri Lanka, a Sri Lankan partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative, a Swiss entity. All rightsreserved.
COVID-19: The Game Changer & Workforce Realignment
26
Annexure 3
Glossary
HRIS
ERP
HCM
RPA
VRS
BCP
Voluntary Retirement Scheme
Human Resources Information System
Enterprise Resource Plan
Human Capital Management
Robotic Process Automation
Business Continuity Plan
T&E Travel and Expense
29
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we
endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will
continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the
particular situation.
© 2020 KPMG, a Sri Lankan partnership and a member firm of the KPMG network of independent member firms affiliated with International
Cooperative ("KPMG International"), a Swiss entity. All rights reserved. Printed in Sri Lanka.
The KPMG name and logo are registered trademarks or trademarks of KPMG International.
Contact us
www.home.kpmg/lk
KPMG Sri Lanka
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Priyanka Jayatilake
Partner - Head of Advisory
T: +94 (11) 5426 401
M: +94 77 7313 390
E: priyankajayatilake@kpmg.com
Kamaya Perera
Partner – Management Consulting
T : +94 (11) 5426 270
M : +94 77 003 1701
E : kperera@kpmg.com
Sharon Abeyratne
Director – HR Advisory ( People & Change)
T : +94 (11) 5426 104
M : +94 77 878 5600
E : sabeyratne@kpmg.com
Kanishka Senarath
Manager – HR Advisory (People & Change)
T : +94 (11) 5426 134
M : +94 77 254 8024
E : ksenarath@kpmg.com
@kpmgsl
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